Israel's Prime Minister to Resign

by Dave Keating | July 30, 2008 at 11:46 pm

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After months of growing scandal around suspicions he had accepted money from US financier Morris Talansky to fund elections campaigns and a lavish lifestyle in the 13 years before he became premier in 2006, Ehud Olmert has announced he is stepping down.

There are now fears that hsi departure could derail some of the advances made recently in teh peace process, and open a political vacuum. Olmert's centrist Kadima party will likely be replaced by the right-wing opposition leader Benjamin Netanyahu, who many see as an unwilling partner for peace. Netanyahu might be more likely to launch an unsanctioned attack on Iran.

Israel on Thursday faced weeks of political turmoil after Prime Minister Ehud Olmert said he would step down in September, in a surprise move that casts a shadow over Middle East peacemaking efforts.

Wednesday's announcement opened the way for political jockeying within Olmert's centrist Kadima party which is scheduled to hold an unprecendented primary on September 17.

It also spurred renewed calls for snap elections to pick a new prime minister.

"Everyone in this government is responsible for a string of failures. We must let the people decide through new elections," right-wing opposition leader Benjamin Netanyahu told Israeli public radio.

He also made it clear that he had no intention or reaching any deal with the new Kadima leader following the party's leadership primary.

"This government has finished its mission, irrespective of who will head Kadima," said Netanyahu, who served as prime minister between 1996 and 1999

Opinion polls indicate Netanyahu is a favourite to replace the embattled Olmert, whose time in office since early 2006 has been dogged by a string of corruption allegations.